The National Budget is one of 9 topics in the Grade 8 Economic and Management Sciences CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What is government revenue?
The money government collects, mostly through taxes
The money a business earns from selling goods
The money a bank lends to government
The amount a household spends every month
Answer: The money government collects, mostly through taxes — Government revenue is the money government collects, most of it through taxes paid by households and businesses.
Medium
2. Which of these is an example of a DIRECT tax?
Income tax deducted from a worker's salary
VAT added to the price of bread
VAT added to the price of clothing
A shop's advertised selling price
Answer: Income tax deducted from a worker's salary — Direct tax is paid straight to government based on what a person earns or owns, such as income tax deducted directly from a salary.
Medium
3. Which of these is an example of an INDIRECT tax?
VAT added to the price of goods in a shop
Income tax on a salary
A company's profit before tax
A bank's interest rate
Answer: VAT added to the price of goods in a shop — Indirect tax is added to the price of goods and services and paid through everyday spending, such as VAT added to the price of goods in a shop.
